The entire pattern of conduct showed a clear attempt by the insurer to avoid responsibility for its obvious failure to discover and report the recorded easement of River Estates Mutual Water Corporation. Therefore, the Supreme Court concluded that the evidence was sufficient to permit the jury to find a breach of the covenant of good faith and fair

damages. The directed verdict on the issue of breach of covenant of good faith and fair dealing rests on Mutual’s inadequate investigation of plaintiff’s claim. Mutual argues that an insurer violates this covenant in a disability insurance contract only if it wrongfully denies a claim knowing it has no reasonable basis for doing so, and that the

interests as it does to its own. The insured in a contract like the disability policy acquired by Eagan does not seek to obtain a commercial advantage by purchasing the policy — rather, he seeks protection against calamity. As insurers are aware, the major motivation for obtaining disability insurance is to provide funds during periods when the

To justify an award of punitive damages, the defendant must be guilty of oppression, fraud, or malice. It must act with intent to vex, injure or annoy, or with a conscious disregard of plaintiff’s rights. Proof of a violation of the duty of good faith and fair dealing does not establish that the defendant acted with the requisite intent to injure

The tort of bad faith is not a tortious breach of contract. It is a separate intentional wrong, which results from a breach of duty imposed as a consequence of the relationship established by contract.

White v. Western Title Ins. Co, Supreme Court of California, 40 Cal. 3d 870, 710 P.2d 309, 221 Cal. Rptr. 509 (Cal. 12/31/1985)

Christian v. American Home Assur. Co., 577 P.2d 899, 1977 OK 141 (Okla. 1977) The obligation of an insurance company on a disability policy is not for the payment of money only, it is the obligation to pay the policy amount immediately upon receipt of proper proof of loss or to defend in good faith and to deal fairly with its insured. Oklahoma